The Commission announced today that on May 16, 2000 the United States District Court for the Southern District of New York entered a Final Judgment By Default against defendant Mark Shkolir ("Shkolir"). The Final Judgment permanently enjoins Shkolir from further violations of Section 17(a) of the Securities Act of 1933 ("Securities Act"), and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5, and directs Shkolir to pay a $35,000 civil penalty.

The Final Judgment arises from a Complaint filed on December 8, 1997, in which the Commission alleged that since at least November 1997, Millennium Software Solutions, Inc. ("Millennium") and its president, Shkolir, had raised hundreds of thousands of dollars by offering and selling Millennium common stock and warrants to investors by misrepresenting Millennium's financial condition and falsely stating that Charles Schwab & Co., a registered broker-dealer, was affiliated with the offering. Millennium purportedly was in the business of developing solutions to computer problems arising from the arrival of the year 2000.

Shkolir failed to answer, plead or otherwise respond to the Commission's Complaint. On December 29, 1998, the Court entered a Final Judgment By Default against Millennium, permanently enjoining Millennium from further violations of Section 17(a) of the Securities Act, and Section 10(b) of the Exchange Act and Rule 10b-5, and directing Millennium to disgorge $380,225 (the amount that it profited from its fraudulent conduct) plus prejudgment interest and to pay a $380,225 civil penalty.